Shoppers of a rather different kind descended onto Jervis shopping centre last week, but hold your shopping bags—these aren’t the bargain-hunters you’d expect. No, these are the big players, the ones with deep pockets and a penchant for prime real estate.
Up to 13 first-round offers were laid on the table for the Dublin city centre mall, recently listed for sale by its less-than-mysterious owners, Paddy McKillen and Padraig Drayne. Apparently, keeping things low-key wasn’t in the cards.
It’s worth noting that this is the first time the shopping centre has been up for grabs since the glory days of the 1990s when McKillen, Drayne, and mastermind businessman Paschal Taggart were busy building their shopping empire. In fact, it’s one of the last remaining centres from that era still clutched tightly by its original developers. Talk about a souvenir!
As for the contenders in this shopping auction, let’s just say they’re not your average deal seekers. The Sunday Times reports some serious names among the bidders: the Comer Group, US property giant Hines, Peter Horgan’s Lugus Capital, and Patron Capital, along with David Goddard’s Lanthorn—who, let’s be honest, makes their clients feel like they’ve hit the jackpot just by being associated with them. Meanwhile, nobody told them that retail was pronounced “dead” during the pandemic!
The excitement doesn’t stop there. This sale follows fierce competition for Marlet’s trio of retail parks in Dublin, Louth and Tipperary. Apparently, the stakes are quite high, since those parks received ten initial bids. Someone must have spilled the beans on the post-Covid retail revival—or perhaps they just missed the memo that bricks-and-mortar stores were extinct.
For over a year, retail has been strutting around the property investment stage like it owns the place, attracting more capital than a flashy yacht at a billionaire’s boat party. Which stands in stark contrast to the depressing state of offices and private rented schemes—those guys are still doing their best impression of a sad clown. Nevertheless, against all odds, retail is experiencing a resurgence that would make a phoenix jealous.
AIB’s latest report shows that in-store spending has risen by 2 percent compared to last year. Sounding more like a dated pop song than market statistics, but we’ll take it! And according to the EY Future Consumer index, a jaw-dropping 70% of consumers prefer actual stores over online shopping. Who knew that humanity still craved the delightful chaos of wandering through aisles filled with things they never planned to buy?
Jean McCabe, chief honcho at Retail Excellence Ireland, elaborates, noting consumers are “returning to stores for the customer experience.” Apparently, nothing says “exciting outing” quite like being bombarded with retail sales pitches while trying to ignore a toddler screaming about candy. Retailers are already hopping on this train, opening more stores to achieve economies of scale while cranking up the entertainment factor.
Brendan McDowell, the brain behind BPerfect Cosmetics, went from an online startup to a physical presence with 13 stores across the UK and Ireland. Talk about leveling up! He admits he had a grand ol’ time negotiating shorter leases and better rents when many shopping centre units were eerily empty. If only he had access to a crystal ball back in 2020!
But, folks, it’s not all fairy dust sprinkled on shopping parks. While some retailers are experiencing a renaissance, others are going through an unceremonious exit. Sky News recently reported that Pepco has sold its Poundland and Dealz stores for a mere £1, which is practically the price of a good cup of coffee these days.
Even the likes of River Island are busily drawing up restructuring plans, perhaps in a misguided attempt to prove that retail is not, in fact, on life support. But Stewart notes that while some closures are inevitable, they can actually open the door for new players on the retail scene, turning the spotlight from the old chains to fresh contenders.
So, while the shopping landscape shifts like a Jenga tower teetering back and forth, one thing is certain: retailers still have plenty of charm and resilience up their sleeves as they embrace the continually evolving world of retail. It seems that despite a few hiccups, the retail tale isn’t over yet—from milestones to leases, and maybe even a bit of comic relief.
